The Chinese economy was the first to face the coronavirus consequences. However, at the moment, it is getting back on track. The regeneration can be seen in various sectors, especially in the raw material industry.
Experts noted that China is reviving a petrochemical project worth $20 billion in its province of Shandong, in the city of Yantai. Initially, the project was a part of efforts to support the infrastructure and the country’s economy struggling with the impact of the coronavirus pandemic. Construction of the 400,000 barrel-per-day (bpd) refinery and 3 million tonne-per-year ethylene plant began several years ago. However, the approval was slow in coming because of the struggle with the excess refining capacity.
On Monday, June 1, the National Development & Reform Commission (NDRC) gave initial approval for the project. The investment will total almost 140 billion yuan ($20 billion).
Shandong Nanshan Group, a private aluminium smelter, will be the main investor. Besides, the projects will be financially supported by chemical group Wanhua and the Shandong provincial government.
Analysts suppose that this large-scale project will be operational by the end of 2024. Economists are sure that it is the best time to enter the market as the global petrochemical industry will have enough time to rebound after the current downcycle. Revenue of the complex is expected to be boosted by demand for petrochemicals that is more resilient than demand for transportation fuels.
